1. Angel Funding
Padmaja Ruparel
Indian Angel Network

2. Historical Perspective
 India has always been entrepreneurial
 25% of world economy in 1700
 Colonization & subsequent socialism - adverse impact
 Old ―DNA has resurfaced with vengeance post liberalization
 >250 mn middle class provides a large market
 Share of middle class rose from 15% in 1993 to over 47% in 2010
 IT Industry paved the way
 US$ 60 mn to US$ 60 bn in 20 years
 99% first generation entrepreneurs
 Entrepreneurship emerging growing across all industries :,
Education, Healthcare, Retail, Cleantech, ..
 “Old” industries / business groups resurrected & how !
 Tatas, Birlas & others

3. Statistics or Opportunities
 Mobile Phones:
Total cell phones - 950 M, Total number of smart phones – 450 M, Monthly
compared to ~500 M cell phones in USA
 Land Prices:
Average price per square foot for apartment in south Mumbai - $3500
compared to Manhattan condos - $1210
 Automobiles:
67 million passenger vehicles, seventh largest vehicle manufacturer in world,
fourth largest Asian exporter of passenger vehicles after Japan, Korea and
Thailand, second fastest growing automobile market in world
 Internet:
Third largest in the world after USA and China. 100 M users spends 16 hours
per week on Internet
 Gold Consumption:
Highest in India (1,100 tons), second highest in China (782 tonnes)

4. Entrepreneurship converts
Job Seekers to Job Creators
 Creates Employment
 Creates Wealth
 Creates Innovation
 Creates Self Sustaining Economic
Growth
And to drive this the most effective
mechanism created by Man :
Angel Investment & Venture Capital Model

5. Venture Creation : Value Chain
Ideation Deployed Growth Scale up Expansion
Team Angels
plus Angel
Grants Fund Venture
Capital
Funds IPO /
Strategic
Investors

6. Angel Investment
 Investments in early stage / start up companies
 Addresses the gap for funding early stage companies
 Investors access constant flow of high quality deal
flow to spread their risks
 Network’s multiple domain expertise enables
exploiting opportunities across sectors
 Angel investments - a new asset class
 Provide entrepreneurs strategic inputs, advice and
mentoring with access to valuable networks
 Opportunity to create disproportionate wealth
creation for all stakeholders
Commitment of Money, Time, Expertise & Networks

7. IAN :
For Entrepreneurs By Entrepreneurs
 India’s most complete player in the early stage eco system
 India’s first and largest business angel group
 Over 200 Investor members who are successful
entrepreneurs & dynamic CEOs
 Network members from across India and overseas
 Entrepreneur pitch meetings in Delhi, Mumbai, Bangalore & Pune
every month
 Concept has found resonance with corporates like Intel,
Google; VCs like SIDBI, Sequoia, Nexus, RVCF, etc.
 Unique model of Incubator in PPP model
 With 26 incubatees signed up
 200 + mentor network in place

8. Where are we today
 36 investments made to date across multiple sectors
- Software Products - Education - CRO
- Mobile Apps - Hospitality - Consumer Internet
- Robotics - Ecommerce - IT Infrastructure
- Medical Devices - Semiconductor - Cloud based
 Over 325 deals received per month, several deals on the anvil for
investment
 Operations in Delhi, Mumbai, Bangalore, Hyderabad & Pune,
processes established
 Several partnerships forged
 TIE – ideal feeder for deal flow
 IVCA – ideal partner for exits
 NASSCOM – ideal partner for innovative cos. in IT / BPO
 NEN – ideal feeder for seed stage deal flow
 UKIBAN – Cross border Angel Network
 FBA – Partnership with Femmes Business Angels in Paris
 WBAA – Founder member to partner with world angels
 BANSEA – Business Angel Network South East Asia

9. What do Angels look for

10. The Proposition
 Clear definition of product or service
 Is it already developed or can you validate
that it can be developed
 Have you clearly defined your customer
 Why is your product / service necessary
 Is it doing something Different / Differently
 Is it “need to have” / “nice to have”
 If IP based, patenting status

11. The Market
 What is the space
 Is it large and rapidly growing
 What is the competition to your product
 What is your strategy to deal with
competition
 Has any market validation happened

12. Execution
 How will you deliver
 Experience of pilots, prototypes etc
 What is your sales / marketing plan
 Scaling up plan
 Risks / mitigating plan

13. Team
Team is fundamental to early stage
venture, providing the best collateral
for an investor
 Track record
 Coverage of skills –
finance, technical, marketing, etc
 Stock/compensation plan
 Advisers, etc.

14. Financials
 Current / Projected for next 3 years
 When will it break even
 Self investment & funding received till
date
 Investment sought
 Valuation expectation

15. Exit
 Building an exit option is necessary
for yourself, your team, and your
investors
 Investors will monetize their
investment
 How
 When
 What

16. And Finally
 Put some of your skin in the game
 Getting a high valuation early can be
fatal
 Size of the pie wins every time over
share of the pie
 Ideas are a dime a dozen, its
execution, execution, execution !!

17. Thank you
Do write in :
padmaja@indianangelnetwork.com